An evaluation of the Empowering Young People Pilot (EYPP) by the National Foundation for Educational Research found that "all local authorities had aimed to make the mechanism simple for young people, used familiar processes or people, and avoided stigmatising the target group".
However, it also found that although young people were receptive to EYPP, take-up was lower than anticipated at this stage of the pilot.
The report said: "Local authorities faced a number of challenges. These included young people mistrusting the funds or being uninterested."
The £14.5m scheme is aimed at 20,000 young people in each local authority.
Target groups include young people in school years 9 to 12 who are eligible for free meals and looked-after children.
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